HealthSouth recapitalizes entire balance sheet
Inpatient rehabilitation provider HealthSouth Corp., Birmingham, Ala., has recapitalized its entire balance sheet through the repayment of $743 million in previous term loans and the extension of a new $500 million credit facility, according to a news release. “This $500 million revolving credit facility, together with the $525 million of senior notes we recently issued, have allowed HealthSouth to complete a comprehensive recapitalization of our balance sheet resulting in reduced refinancing risks and enhanced flexibility,” said HealthSouth Chief Financial Officer Doug Coltharp, according to the release. Under terms of its previous agreements, HealthSouth terminated a $400 million secured revolving credit facility and a $60 million synthetic facility, putting in place a newly amended credit agreement for up to $500 million at a rate of Libor plus 3.5%, maturing in October 2015. HealthSouth used $100 million from its new revolving line of credit, plus $128 million in available cash, and net proceeds from the $525 million in new senior notes to pay off previous $743 million in company debt, according to the release.